In Power Price Battle, Geothermal Takes a Hit

The push to harness geothermal energy could lose steam because of a price standoff between producers and the sole distributor.

State-owned electricity monopoly PLN and Pertamina Geothermal Energy have reached an impasse in renewing their power purchase deal for electricity from PGE’s Kamojang and Lahendong plants.

Combined, the 235-megawatt Kamojang plant, in West Java, and the 60MW Lahendong facility, in North Sulawesi, account for a fifth of Indonesia’s current geothermal production, which PGE sells to PLN at 6.2 and 9.7 cents per kilowatt-hour, respectively.